Altimeter data have been assimilated in an ocean general circulation model using the water property conserving scheme. Two runs of the model have been conducted for the year 2004. In one of the runs, altimeter data have been assimilated sequentially, while in another run, assimilation has been suppressed. Assimilation has been restricted to the tropical Indian Ocean. An assessment of the strength of the scheme has been carried out by comparing the sea surface temperature (SST), simulated in the two runs, with in situ derived as well as remotely sensed observations of the same quantity. It has been found that the assimilation exhibits a significant positive impact on the simulation of SST. The subsurface effect of the assimilation could be judged by comparing the model simulated depth of the 20°C isotherm (hereafter referred to as D20), as a proxy of the thermocline depth, with the same quantity estimated from ARGO observations. In this case also, the impact is noteworthy. Effect on the dynamics has been judged by comparison of simulated surface current with observed current at a moored buoy location, and finally the impact on model sea level forecast in a free run after assimilation has been quantified in a representative example.